I just got this game and I have a few questions.

1. how is the type of combat decided? example: player lands on space draws card and its a dragon str 7. player is a caster so craft 5. can the player even fight the dragon? or is player just going to lose one life.

2. same type of question but this time the dragon is all ready on a space, player rolls die and moves to land on spot, can the player then decide to use craft instead or srt? since he is aware that the dragon is there?

if you have to cross a spot that a monster is on. do you have to stop at the spot the monster is on or do you move the full die roll?

I just got this game and I have a few questions.

1. how is the type of combat decided? example: player lands on space draws card and its a dragon str 7. player is a caster so craft 5. can the player even fight the dragon? or is player just going to lose one life.

2. same type of question but this time the dragon is all ready on a space, player rolls die and moves to land on spot, can the player then decide to use craft instead or srt? since he is aware that the dragon is there?

First of all, I suggest you take a deep breath and carefully read all the Rulebook again. There might be sections that are not crystal clear, but what you're asking is explained in a detailed and complete way.

To answer to your questions:

1) Dragon Str 7 must be attacked using Strength. The character may have Craft 5 but has also a Strength attribute. He has to fight with Strength and may either win the combat or lose one life.

2) A faceup Enemy doesn't absolutely change the approach to the combat, so it's the same as answer no.1.

if you have to cross a spot that a monster is on. do you have to stop at the spot the monster is on or do you move the full die roll?

No, you don't stop at all. Again, read the manual from the beginning to the end, and use the Talisman Encounter Sequence on last page to help you understand the flow of the turn and of the encounters.